With Online Banking on the Rise, more Branches to Shut Shop in Britain

Published By : 10 Jul 2014 |Published By : QYRESEARCH

With internet and mobile banking gaining popularity, an increasing number of Britons are reducing trips to branches across the country. An accountancy firm stated that daily transactions worth nearly 1billion pounds are being made through digital banking and this has caused branch use to sharply decline. This means that banks are now shutting down branches that are proving unprofitable and investing more in online and mobile customer services. This will expand their market to those who wish to bank on the move.

From digital transactions worth 5.8 billion pounds a week last year, the number has gone up to 6.4 billion pounds in Britain. Mobile banking apps being downloaded has increased from 2.3 million times in January to 14.7 million times. Internet banking sites have been getting over 7 million log-ins a day.

The Royal Bank of Scotland said it would close over 1,900 branches after transactions fell nearly 30% over the past three years. Lloyds, Barclays and HSBC are expected to follow suit. A banking advocacy group has, however, warned that this could have a negative impact on those customers who solely depend on branch services such as those in rural communities.

As a precautionary measure, banks are automating basic services at branches such as depositing and withdrawing cash, and bills payment. This, to a certain level, will ensure existing customers get speedy and efficient services, and will also attract new customers.